| Rule Violation | Whether composition may be offered | Composition Amount which may be Offered by SGX-ST, where SGX-ST has Determined the Trading Member, Approved Executive Director and/or Trading Representative to be Liable | Mandatory minimum penalty imposable by the Disciplinary Committee | |||||||||
| Rule Chapter/Number | Brief Description of Rule | Trading Members (or Designated Market Maker, where applicable) | Approved Executive Directors | Trading Representatives (or Market Making Representative, where applicable) | ||||||||
| 1st Violation | 2nd Violation | 3rd Violation | 1st Violation | 2nd Violation | 3rd Violation | 1st Violation | 2nd Violation | 3rd Violation | ||||
| Chapter 16 — Corporate Finance | ||||||||||||
| 16.1 | Permissible Activities | |||||||||||
| 16.1.1 | Trading Member and corporate finance staff not to engage in corporate finance activities without appropriate licence. | Not Compoundable | Not Compoundable | N.A. | N.A. | N.A. | $10,000 | |||||
| 16.1.2 | Trading Member and corporate finance staff to engage only in permitted activities | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
| 16.1A | Application of Chapter | |||||||||||
| 16.1A.1 | Trading Member that holds a licence specified in Rule 4.1.1(1)(b) to comply with such requirements prescribed by the Relevant Regulatory Authority and principles of good business practice in respect of the stipulated requirements. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
| 16.2 | Notification Procedures | |||||||||||
| 16.2.1 | Trading Member to notify SGX-ST before engaging in corporate finance activities. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
| 16.2.2 | Trading Member to supply SGX-ST with information it requires on the corporate finance activities. | Not Compoundable | Not Compoundable | N.A. | N.A. | N.A. | N.A. | |||||
| 16.3 | Staffing | |||||||||||
| 16.3.1 | Trading Member to employ adequate staff with relevant expertise and experience. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
| 16.3.2(1) | Trading Member to supervise its corporate finance staff | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
| 16.3.2(2) | Trading Member to implement written supervisory procedures to ensure that corporate finance staff comply with this Chapter | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
| 16.3.2(3) | Trading Member to implement any procedure, Directive or recommendation by SGX-ST | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
| 16.4 | Separation of Corporate Finance Activities | |||||||||||
| 16.4.1 | Trading Member to separate corporate finance activities from dealing, research and back office operations. | Not Compoundable | Not Compoundable | N.A. | N.A. | N.A. | $10,000 | |||||
| 16.4.2 | Trading Member to put in place procedures to avoid conflict of interest. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
| 16.4.3 | Trading Member to ensure confidentiality of corporate finance customers. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
| 16.5 | Setting of Limits | |||||||||||
| 16.5.1 | Underwriting commitment limits to be set by appropriate personnel. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
| 16.6 | Confidentiality of Information | |||||||||||
| 16.6.1 | Trading Member to ensure that corporate finance staff does not divulge confidential information to any person not entitled to receive. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
| 16.6.2 | Trading Member to ensure that corporate finance staff exercise due care to prevent leakage of confidential information. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
| 16.7 | Trade Restrictions | |||||||||||
| 16.7.1 | Trading Member to maintain a restricted list of securities. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
| 16.7.2 | Security to be moved onto the restricted list no later than the date the deal is mandated. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
| 16.7.3 | Restricted list to be circulated only to appropriate personnel. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
| 16.7.4 | Staff who are privy to the Restricted List not to trade in the restricted securities, or any derivative of such securities | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
Added on 16 May 201116 May 2011 and amended on 19 May 201419 May 2014.